The majority of Australian retail investors would be willing to see lower returns if the companies they invested in always behaved ethically, a recent report has found.
The report, conducted by KPMG, surveyed 1510 Australian retail shareholders and found transparency and honesty to be one of the most sought after factors when considering which companies to invest in, second only to returns.
The survey also found 57 per cent of shareholders would be willing to accept lower financial returns if a company “always acted ethically towards customers, employees and the community”, and 72 per cent valued “reputation” ahead of “recent dividends” (69 per cent).
These findings speak to the value modern investors place on trustworthy and ethical behaviour, KPMG’s head of customer, branding and marketing, Amanda Hicks said.
“What this new research makes clear for the first time is Australian retail investors are now keenly aware of the importance of reputation, transparency, ethical behaviour, values alignment, and social responsibility.”